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Import of Vehicles (Pakistan)

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Import of Vehicles (Pakistan) Import Of Vehicles Taxpayer’s Facilitation Guide Brochure- ___ December 2010 Revenue Division [email protected] Federal Board of Revenue 0800-00-227, 051-111-227-227 Government of Pakistan www.fbr.gov.pk Brochure – Import of Vehicle Our Vision To be a modern, progressive, effective, autonomous and credible organization for optimizing revenue by providing quality service and promoting compliance with tax and related laws Our Mission Enhance the capability of the tax system to collect due taxes through application of modern techniques, providing taxpayer assistance and by creating a motivated, satisfied, dedicated and professional workforce Our Values Integrity Professionalism Teamwork Courtesy Fairness Transparency Responsiveness For assistance and information on tax matters Please contact our help line center through Toll Free Telephone 0800-00-227 Telephone 051-111-227-227 or 051-111-227-228 Fax 051-9205593 E-mail [email protected] or Visit our tax facilitation center (located in all major cities) or any tax office or Visit our website at www.fbr.gov.pk Brochure – Import of Vehicle Revenue Division Brochure - ____ Federal Board of Revenue Government of Pakistan February 2008 Introduction This brochure provides basic information for the benefit and use of taxpayers importing vehicle to understand their rights and obligations. The brochure explains in detail the conditions laid down in the Import Trade Policy and the structure of taxes under the Customs Act, 1969, Income Tax Ordinance, 2001, Sales Tax Act, 1990 and Capital Value Tax on import of vehicles. In this brochure some terms that are not familiar to taxpayers used for the first time are in italic bold and explained appropriately. This brochure is to assist the taxpayers and reflects the legal position at the time of printing. In case of any conflict the legal provisions of the law shall always prevail over the contents of this brochure. Comments and suggestions We welcome your comments about this brochure and your suggestions for future editions. You can e-mail us at [email protected] OR You can write to us at the following address: Facilitation and Tax Education, Federal Board of Revenue, Constitution Avenue, Islamabad Brochure – Import of Vehicle IMPORT OF VEHICLES 1. The Trade Policy and Customs rules following three schemes (certain allow import of vehicles into Pakistan. restrictions and conditions apply): Both new and used vehicles can be imported. Transfer of residence 2. New vehicles can be imported freely by Gift any one, under the generally applicable import procedures and requirements, Personal baggage like any other goods, on payment of applicable duty and taxes. 4. The terms and conditions applicable for the import of vehicles under the above 3. Used vehicles can only be imported by mentioned three schemes are tabled Pakistani Nationals under any of the below: Table – I S. Requirements Applicable terms and conditions No . Transfer of Residence Gift Scheme Personal Baggage Scheme Scheme a. Eligibility to Once in two years (700 days after the date of Bill of Entry / Goods import Declaration of an earlier import under any of the three schemes) b. Type of vehicle Cars meant for Cars meant for Cars meant for transport that can be transport of transport of of passengers excluding imported passengers passengers, busses, vans, trucks & excluding busses, excluding busses, pickups, 4X~4 vehicles vans, trucks & vans, trucks & Agricultural tractors, pickups, 4X4 pickups, 4X4 bulldozers, laser land vehicles vehicles levelers and combined Agricultural tractors, Agricultural tractors, harvesters bulldozers, laser land bulldozers, laser levelers and land levelers and combined harvesters combined harvesters Motor cycles and scooters Not more than c. Model of the Not more than Three Three Not more than Three vehicle years old model years old model years old model (year of (year of (year of manufacturer) manufacturer) manufacturer) d. Importer‟ s A minimum of 700 A minimum of 700 A minimum of 180 days Period of stay days stay out-side days stay out-side stay out-side Pakistan out-side Pakistan during the Pakistan during the during the immediately Pakistan immediately immediately preceding seven months preceding three preceding three from the date of years from the date years from the date application Brochure – Import of Vehicle of application of application e. Donee Not applicable A family member Not applicable (To whom the normally resident in vehicle can be Pakistan i.e.: gifted) i. By parents to children (adult) ii. By children (adult) to parents iii. By either of the spouse iv. By sister to sister or brother v. By brother to brother or sister Brochure – Import of Vehicle f. Procedure and i. Goods declaration i. Goods declaration in i. Goods declaration Documents etc. in the prescribed the prescribed form as in the prescribed form as per per Annexure I form as per Annexure I Annexure I ii. Purchase receipt of ii. Purchase receipt the vehicle ii. Purchase receipt of the vehicle of the vehicle iii. Bill of lading showing iii. Bill of lading, if name and address of iii. Bill of lading, if applicable, dated not the consignee applicable, dated later than 120 days not later than 120 from the arrival of the iv. Attested photo copy days from the arrival applicant of the passport of of the applicant Pakistan origin card of iv. Attested photo the donor iv. Attested photo copy of the passport copy of the passport or Pakistan origin v. CNIC of the donee or Pakistan origin card (Original will be card (Original will be required at the time required at the time of clearance) of clearance) Regular import of new vehicles 5. Two different regimes are en-force for levy of SPECIAL REGIME the taxes payable on import of vehicles, 6. Under the “Special Regime” the taxes are under the above schemes. In this facilitation levied on the basis of engine capacity, material, these are referred as Special Regime and Normal Regime. irrespective of the value of the vehicle and the optional or additional accessories. The Special Regime covers: accumulated amount of taxes, covering Custom Duty, Sales Tax, Income Tax and Certain specified used vehicles Capital Value Tax based on engine capacity, imported under the aforesaid three on import of the used vehicles meant for schemes. transport of passengers, are tabled below: Normal Regime covers: TABLE – II Type of vehicle (Used vehicles Taxes New vehicles imported under the aforesaid three schemes; meant for transport of passengers) Used vehicles imported under the Upto 800 CC (Asian makes US$ 4,400 aforesaid three schemes but are not only) covered under the special regime; and Brochure – Import of Vehicle Upto 800 CC (Other than US$ 6,600 of 1% for each completed month subject to a Asian makes) maximum of 50%. From 801 CC to 1000 CC US$ 5,500 From 1001 CC to 1300 CC US$ 11,000 Each completed month for depreciation is From 1301 CC to 1500 CC US$ 15,400 calculated from the date of first From 1501 CC to 1600 CC US$ 18,700 registration of the vehicle abroad to the From 1601 CC to 1800 CC US$ 23,100 date of entry into Pakistan. excluding jeeps (Asian makes 8. The amount of taxes stated in Table – II above, only) are payable in US Dollars or equivalent amount in Pak Rupees converted at the rates prevailing at the time of making the payment For enquiries about applicable duties and of the taxes. taxes on vehicles other than those meant for transport of passengers, please contact FBR‟ s Help Line Center. 9. The following example would explain how the amount of taxes payable are determined 7. The amount of taxes stated in Table – II, under the above mentioned Special Regime: above, are reduced on account of depreciation in value of the vehicle at the rate Particulars Example-I Example- Example-III Transfer of II Personal baggage Residence Gift scheme NORMAL REGIME Engine 800 CC 1299 CC 1700 CC capacity (Asian (Any (Asian Make) 10. Under the “Normal Regime” the taxes Make) Make) Date of st st st are levied on the basis of both engine 1 Jan, 1 July, 1 May, 2007 registration 2005 2006 capacity and value of the vehicle. abroad th th th Date of entry 20 July, 20 July, 20 July, 2007 11. Normal regime covers the import of into Pakistan 2007 2007 following categories of vehicles: Period 30 Months 12 02 Months and 20 days between first and 20 Months registration days and 20 New vehicles imported under the and entry days aforesaid three schemes; into Pakistan Completed 30 Months 12 02 Months months Months Used vehicles imported under the Depreciation 30% 12% 2% aforesaid three schemes but are not @ 1% per covered under the special regime; and month Admissible 30% 12% 2% Regular import of new vehicles. depreciation (restricted to 50%) 12. The rates of taxes under the normal Full amount US $ 4,400 US $ US $ 23,100 regime on import of vehicles meant for of taxes 11,000 transportation of passengers are tabled Reduction in US $ 1,320 US $ US $ taxes to the (30% of 1,320 462 below: extent of the US $ (12% of (2% of US $ 23,100) TABLE – III amount of 4,400) US $ Type of Customs Sales Income Special depreciation 11,000) vehicle Duty on Tax on Tax on Federal Actual US $ 3,080 US $ US $ 22,638 (meant for Value Duty Sales Excise Duty amount of 9,680 transport of Assessed paid Tax paid on duty taxes passengers) (See value value paid value payable Para 13 From 1601 75.00% 17.00 5.00% 1.00% below) CC to 1800 % Used vehicles (Not covered under special regime) CC (Other than Asian makes) Brochure – Import of Vehicle From 1601 75.00% 17.00 5.00% 1.00% c.
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